Gold Nuggets Digest: breaking the 3k mark, China retail buying, gold vs stocks breakout watch, silver price trends, fading fiat (USD gold purchasing power)
Breaking Thousands
James Stanley cautions on the 3k enthusiasm: “these types of rounded levels often take time to gain acceptance; the $1k level was a year and a half before buyers could force a trend above that price; the $2k level took 3.5 years, even with Fed pedal to the floor through Covid“
Will it be different this time? (p.s. please feel welcome to join the conversation in the comments section; questions and opinions are encouraged!)
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China Loves Gold
China's gold ETF AUM and holdings reached record highs.
China has been an important driver of gold demand both on the institutional/central bank side of things, but also on retail ETF (and physical) investment demand. $Gold - main 2504(GCmain)$
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Gold vs Stocks
Gold looks set to breakout vs the Value Line Geometric Index.
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Silver Lines
Jesse Colombo of The Bubble Bubble Report observes on Silver: “Although silver has traded in a choppy, erratic manner for much of the past year, it is in a confirmed uptrend… This is evident in the 200-day simple moving average, a helpful tool for identifying an asset’s primary trend by filtering out short-term price fluctuations.“
Fading Fiat
To celebrate the US$ gold price breaking the $3000/oz level, here’s the flipside — the amount of gold in ounces that a single US Dollar can buy.
Or in other words it’s basically a chart of the long-term decline of US Dollar purchasing power.
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